Umbrella insurance refers to an insurance policy that protects the assets and future income of the policyholder above and beyond the standard limits set on their primary (i.e., underlying) insurance policies. Typically, an umbrella policy is pure liability coverage over and above the coverage afforded by the underlying policy, and is sold in increments of one million dollars. The term “umbrella” is used because it covers liability claims from all policies underneath it, such as automobile and homeowner's policies. For example, if one has an automobile insurance policy with liability limits of $500,000 and a homeowner's policy with a limit of $300,000, then with a million dollar umbrella insurance policy, one's limits become in effect, $1,500,000 on the automobile policy and $1,300,000 on a homeowners liability claim. Umbrella insurance may also provide coverage for claims that may be excluded by the primary policies often including, but not limited to: false arrest, libel, slander, and invasion of privacy.
While umbrella policies have long been thought of as coverage only needed by the very rich, it is becoming more and more apparent that everyone should have an umbrella policy. However, currently, no systems or methods exist for a customer to apply for and be issued an umbrella policy using a convenient automated process. Also, many current umbrella insurance product and pricing structures are very antiquated with many of the policy processes being performed manually. For example, typically, approximately 50% of the umbrella insurance policy renewals require manual intervention by a customer service representative and most adjustments to umbrella insurance policies are often performed at time of policy renewal instead of mid-term due to the manual process required.
In this regard, there is a need for systems and methods that overcome the shortcomings described above and others.